The economy has been badly affected in the last 2 months. Most businesses claimed that they were recession-proof but they were not pandemic proof.

It’s far worse than the 2008 crisis as in the subprime crisis people did lose jobs but companies did not get wiped off. This time about 15% of the companies globally may get completely wiped off by the end of this crisis.

Trillions of dollars of stimulus packages or quantitative easing measures have been taken by the Global governments. Majorly led by the Federal Reserve in the United States, which has continued to pump funds in to the system. Over 9 trillion dollars has been pumped into the US itself and over 17 trillion dollars have been pumped into the system globally.

Amount pumped in the United States Date
$700 Billion 15 March 2020
$2.7 Trillion 27 March 2020
$2.3 Trillion 9 April 2020
$3.49 Trillion 23 April 2020
$250 Billion 24 April 2020
$346.4 Billion 25 April 2020
$9.78 Trillion Total

The figures have been extracted from the International Monetary fund

Quantitative easing does mitigate the risk in the short-term but it has devastating effects in the long run which causes sudden inflation and due to which the supply chain is hit directly. The factor which bothers the most is that such quantitative easing is mainly for either the unemployed or the corporates but for the category of startups and many small businesses there are less to almost no benefits. Most countries have reduced their interest rates and are providing soft loans to many businesses but they must be ready to bail out those accounts because most of the businesses will not be able to pay-back.

Country Amount pumped in
Germany $171,319,104,150
Italy $27,452,793,900
Spain $19,756,103,077
India $1,987,282,168
Australia $125,103,965,812
UAE $7,215,793,056
Malaysia $1,395,853,321
Singapore $45,042,818,582
Thailand $46,159,458,904

The figures have been extracted from the International Monetary fund

Leave a Reply

Your email address will not be published. Required fields are marked *

Close Bitnami banner